Tax Implications
Due to the Council holding acquired or developed assets, it is not anticipated that there will be any corporation tax or income tax implications from this strategy
- Some properties may be VAT elected, meaning VAT must be charged to tenants. This will be dealt with on a case by case basis and will be covered by the due diligence connected with that acquisition. The Council is able to charge and recover VAT.
- Capital Gains Tax would not apply to assets sold from Council ownership.
- Where investments in companies (such as SPVs) are made in line with this strategy, all tax liabilities will remain with the SPV.